R&D in China: Historical and R&D in China: Historical and Institutional PerspectivesInstitutional Perspectives

Erik Baark

Division of Social Science

HKUST

Knowledge Society?Knowledge Society?

Knowledge society and Innovation have become popular terms in China recently Modernization and competitiveness relies on

innovation New knowledge is an essential component of

innovation Ultimately, Chinese society should become a

knowledge economy But what do concepts of knowledge and

innovation mean in China?

Traditional Chinese Concepts of Traditional Chinese Concepts of KnowledgeKnowledge Chinese traditional culture profess much

respect for knowledge Treasuring up of knowledge, learning, and

teaching Imperial examinations Exploitation and transmission of scientific

knowledge But concepts of knowledge and the

process of acquiring it was different from those that emerged in Europe

Concepts of Knowledge: Greek Concepts of Knowledge: Greek and Chineseand Chinese

Greek Focus on nature and

elements of nature Exploring material objects

and causes of phenomena Sought knowledge for

fame and livelihood as teachers

Contending ideas debated Few opportunities for

practical use

Chinese Focus on cosmic order

and principles (dao) Heaven, earth, society and

human body interacted in a resonant universe

Chinese intellectuals used knowledge as advisors to rulers

Consensus rather than divergence

Practical application of knowledge in government

Based on Lloyd and Sivin: The Way and the Word (2002)

The Imperial Style of InquiryThe Imperial Style of Inquiry

Totalism: An ordered structure integrating everything that exists The same order runs through both human and natural

spheres Provides justification for imperial authority – that is

responsible for universal harmony Strengths

Stability, shared values through education, self-discipline based on role models

Weaknesses Failure to recognize new knowledge outside established

order Primacy of mind over matter

Based on Munro: The Imperial Style of Inquiry in Twentieth-Century China (1996)

Balance of Exploitation & Balance of Exploitation & ExplorationExplorationExploitation: Adoption of existing

technology or routine (duplicative or creative imitation)

Exploration: Discovery of new technology or creation of new routines (creative innovation)

Chinese organizations are predominantly following an exploitative strategy

Learning: From Imitation to Learning: From Imitation to InnovationInnovationThe dominance of an exploitative

approach to learning Emphasize rote learning Promotes imitation

Chinese actors need to adopt strategies that also emphasizes exploration, that is, innovation

Innovation & CreativityInnovation & Creativity

Innovation also involves a break with the past – the gale of creative destruction Social and cultural institutions need to

foster creativity Acceptance – or perhaps celebration –

of individuals who deviate from the norm: Li Bai, Ren Xiong

Integration of creation and application of knowledge Cooperation of many actors in the

innovation process Vital importance of flow of knowledge

Creativity, Invention and Creativity, Invention and Intellectual PropertyIntellectual Property Traditional attitude to art and craftsmanship

promoted copying of old masters “To Steal a Book is an Elegant Offense” Useful for diffusion of technology, but not

necessarily for invention Although China has been home to a large

number of important inventions, few were protected by any legal institutions (such as IPR)

The current record of IPR in China shows weak incentives for invention

China’s Innovation SystemChina’s Innovation System

The PRC science and technology system is fragmented and based on traditional concepts of “linear process of innovation” Ideal: Basic research Applied research and

development Manufacturing – But basic research weak and isolated

Fragmentation between creation of knowledge and application of knowledge• Based on excessive “division of labor” in the

innovation system

Some signs of integration of knowledge creation and application in spin-off firms

Problems of China’s National Problems of China’s National Innovation SystemInnovation System Enterprises still not the center of innovation Government interferes too much in innovation

process Financing of innovation weak Innovative potential of small enterprises

ignored Exaggerated reliance on research institutes Deficient flow of knowledge Generic infrastructure for knowledge creation

and dissemination weak

Based on 柳卸林 : 21 世纪的中国技术创新系统工程 (2000)

Concluding RemarksConcluding Remarks

The process of creation and application of knowledge in China is shaped by the social context of learning and discovery Confluence of knowledge and power relations Focus on exploitation, rather than exploration

Innovation also influenced by tradition Lack of “creative destruction” Dominance of the linear model concept in policy Deficient integration of research and development

activities Limited flow of knowledge